Take a look at our eligibility and selection criteria.
Target areas
CLIMATE MITIGATION FINANCE
Projects to reduce, limit or sequestrate GHG emissions.
CLIMATE ADAPTATION FINANCE
Projects to adapt to current and expected effects of Climate Change.
Eligibility criteria
The ICFA is a multi-year acceleration program for emerging investment managers focused on climate action.
Are you an Emerging Investment Manager?
- The applicant is a first- or second-time investment management or investment advisory company (the “Applicant”) and intends to set up an impact investment vehicle (the “Project”).1
- The Applicant will demonstrate best market practices.2
- The Applicant will demonstrate a commitment to develop and implement best practices in the management of responsible investments by being signatory to recognized responsible investment frameworks.3
- The Applicant will or intends to be duly authorized by a competent supervisory authority of an EU Member State; or subject to a regulatory and/or supervisory regime that is equivalent to that of EU Member States.4
Planning to set up an Impact Investment Vehicle
- The Project will have a strategy enabling the generation of positive social impact alongside financial return on investments, in line with its sustainable investment objective(s).5
- The Project will target to finance activities made with the intention to generate positive, measurable, and substantial impact. The Project will highlight if/how it is addressing unmet needs for specific target populations.
- The Project will have an integrated process in place to identify, manage, monitor, and measure the environmental and social impacts on 100% of its investments.
- The Project will apply exclusion criteria in line with the Initiative’s Exclusion Policy and ensure the compliance of its investments with the defined exclusion criteria.
With Climate Finance as its Primary Focus
- The Project’s impact strategy must focus on relevant impact themes, with an intention to contribute to climate change mitigation and/or climate change adaption. 6
- The Project will have at least 75% of its total assets allocated to investments that contribute to one or more of these impact themes.
Aiming to invest in Challenging Geographies
- The Project will have a target portfolio consisting of investments in target countries above the programme minimum.
Assets under management for every ICFA Cohort need to reach a minimum of 70% to be invested in countries eligible to receive international climate finance.7
Ready to be accelerated?
- The investment strategy is built from insights gained through the feasibility studies and the expertise of its team members, utilizing local networks and knowledge, but still to be refined.
- The team has a solid grasp of the potential impact of their investment vehicle and has begun formulating their theory of change. However, the concepts of impact still require refinement and integration into a comprehensive impact measurement system.
- The investment manager team boasts a sufficient array of expertise necessary for the successful launch of the fund. This expertise includes fund / vehicle management, investment management, investment acumen, technical proficiency, structuring, legal competencies, pipeline development, and fundraising capabilities.
- The investment vehicle and the investment manager team’s collective knowledge, time commitment and experience provide a robust foundation for taking advantage of the programme support and reinforcing their ability in navigating the complexities of fund establishment and operation, ensuring a well-rounded and effective approach to achieving the investment vehicle’s objectives.
- The investment manager team possesses ample expertise and local networks, enabling them to effectively delineate a pipeline aligned with the investment strategy and impact aspirations to convince institutional investors to commit to their investment vehicle.
(1) Eligible Applicants are unlisted entities, typically young companies with limited resources, that are initiating their first or second institutional vehicle, with the objective to advise and/or manage this vehicle. Managed accounts, SPVs, and pilot vehicles with limited AUM are not considered institutional vehicles. If the Applicant is part of a group of companies, i.e., multiple companies which are directly or indirectly controlled by a controlling entity, eligibility will consider on a group basis.
(2) Applicants undertake to prepare, at least, an impact or an Environment and Social (E&S) report, and, in addition but not limited to, CSR/sustainability guidelines/policy, annual CSR/sustainability report, engagement policy, active ownership policy, etc. published at the level of the Applicant or at the level of its group. Applicants will be subject to the Initiative’s General Terms of Business and General Code of Conduct.
(3) Recognized responsible investment frameworks such as, but not limited to, the United Nations Principles for Responsible Investment (UN PRI) and the Operating Principles for Impact Management (OPIM).
(4) The equivalence of regulatory and/or supervisory frameworks of non-EU countries with the EU framework will be assessed premised on the equivalence decisions of the European Commission and the Luxembourg national supervisory authority.
(5) For a Project that is not subject to the SFDR, this requirement will be assessed on the basis of the Project’s legal and reporting documentation, and its non-financial objective described therein. As minimum requirements, (a) the Project has indicators to monitor and report on its impact objectives and demonstrate commitment to recognized impact reporting standards relevant to the impact strategy of the Project; and (b) the Project maintain on its website information on the methodologies used to assess, measure and monitor the impact characteristics or the impact of the sustainable investments selected for the financial product, including its data sources, screening criteria for the underlying assets and the relevant sustainability indicators used to measure the environmental or social characteristics or the overall sustainable impact of the financial product.
(6) Climate impact themes are defined according to internationally and/or regionally agreed classification systems and taxonomies around climate change mitigation and/or climate change adaptation, including without limitation the MDBs’ Common Principles for Climate Mitigation and Adaptation Finance Tracking. Please see https://www.icfa.lu/our-eligible-areas.
(7) Please see https://www.greenclimate.fund/countries.
Selection criteria
Eligible applicants will have the opportunity to enter the selection process, upon invitation.
During the selection process, your proposal and your team will be assessed on various features, including the following, as well as your readiness to be accelerated.
Investment Strategy
- The investment strategy is innovative in terms of types of projects that are financed.
- The investment strategy relies on thorough feasibility studies, grounded in technical expertise, local presence, and reliable information sources.
- The investment strategy includes clear investment criteria specifying geographies, sectors, company types, instrument types, etc.
- The investment strategy demonstrates viability and the potential to be replicated.
- The investment manager has identified deal flow channels and already secured a strong pipeline of investment opportunities.
Impact Strategy
- The Project’s investments are intended to have substantial impact addressing unmet needs that can be measured and monitored through best practice KPIs.
- The impact strategy translates into clear ESG criteria, which are balanced and sufficiently taken into account, including relevant cross cutting topics (such as diversity, gender).
- The Project demonstrates through its impact methodology how the impact is to be assessed, measured and reported on a regular basis throughout the whole lifetime of the investments.
- The Project is structurally appropriate for its impact and investment strategy (such as blending public and private sources of capital).
- The Project is focused on challenging geographies.
- The Project envisages to provide non-financial support to its investees across their lifecycle.
Team
- The Applicant’s team is sufficiently staffed and has duly considered key person risk.
- The team has, collectively and individually, the necessary skills and experience to manage an investment vehicle and the necessary expertise in the targeted geographies and sectors.
- The team has experience in developing, structuring and managing impact finance deals related to the Project’s investment strategy.
- The team has experience and capacity to perform ESG due diligence on investees and properly address ESG issues.
- The team is aligned in the development of the Project and has a credible plan to commit sufficient time to the Project over the long term.
- The team demonstrates adequate personal and financial commitment (i.e. min 1% of capital plus sweat equity by each key person) to strive for the success of the fund and have adequate financial means to endure delays in the Project’s set-up process.
- The Applicant has, or intends to have, a local presence, partnership or other means of support in the Project’s investment regions.
Fund Raising
- The financial returns (as projected in the financial model) are capable of supporting the Project’s expected capital structure, taking into account the longer-term impact objectives, and the financial returns are attractive for private and institutional investors taking into account the non-financial return.
- The Applicant demonstrates fundraising ability (able to present the Project in a convincing manner and access to excellent networking channels).
- The Applicant has crafted an exhaustive list of different investors and devised a phased strategy to engage critical investors (whether anchor investors or derisking capital providers).
- The Applicant has initiated fundraising and demonstrates a high level of detail regarding the current phase of investor talks (e.g., “first contact”, “interest received”, “due diligence started”).
- The Applicant has entered advanced fundraising discussions with credible investors and is able to demonstrate this with documentation (e.g., a support letter).
For more details on terminology used throughout our programme, please refer to our Glossary of Sustainable Finance Concepts.
Selection Committee
The ICFA has appointed an independent Selection Committee, which uses its in-depth expertise in environmental, climate change and impact finance in order to propose a balanced selection of innovative and promising fund managers.
Barbara is a seasoned investment practitioner in the climate and infrastructure space. Prior to becoming an independent advisor, she held various positions at the EIB Group for more than 20 years and was heading the Climate and Infrastructure Fund investment activities from 2018 to 2023. Barbara has extensive experience of renewable energy, energy efficiency, environment and resources, sustainable transport, digital and social infrastructure fund investments and a solid ESG and risk background. During her career, Barbara held various executive and non-executive board positions. Barbara is a member of the UNPRI Infrastructure Advisory Committee.
Femke Bos is the Director Business Development, Strategy & IESG of Invest International. Invest International is set up in July 2021 by the Dutch Government and FMO, the Dutch Development Bank, to foster innovative solutions with the for global, SDG related, challenges in Emerging Markets and to make the necessary investments feasible.
She brings a wealth of experience in impact investing, project development and fund management in Emerging Markets covering themes as financial inclusion, energy and climate, water, agri-food, health and sustainable infrastructure. Prior to joining Invest International, she worked at Triodos Investment Management and FMO, where she held several (fund) management positions and set up the Triodos Microfinance Fund. During her career she also served as a Non- Executive Director on the boards of a number of Microfinance and SME banks in South East Asia.
Impact investing expert and social entrepreneur with nearly two decades working for major international development finance institutions (World Bank, African Development Bank, International Fund for Agricultural Development) and an experience as Fund Manager of a global blended finance vehicle for agribusiness, Mr Santi is the currently CEO of Development Finance Lab, a Luxembourg-based boutique consulting company advising clients on impact investing solutions for developing and emerging countries. He is also the President and co-founder of Afrilanthropy, an international solidarity platform focused on advising and incubating African home grown social enterprises. He holds a PhD in Development Policies from the University of Trieste, a Master in Economics from the College of Europe in Bruges and Certificate in Public Financial Management from Harvard. He speaks Italian, English, Spanish, Portugues … and wéineg Lëtzebuergesch!
Martin Poulsen has been active in sustainability, private equity, SME finance and emerging markets for over 25 years. He has worked extensively on both the GP and LP sides and been successful in raising capital from both public and private sources, including for new fund managers pursuing innovative investment strategies.
He is Managing Director of Acacia Sustainable Business Advisors, which provides advisory and fund- raising services to fund managers SMEs, NGOs and public sector organisations (particularly with climate-oriented strategies). He was a founder and co-CEO of the Moringa Partnership, an agroforestry sector fund manager from 2012-2016. Martin is a member of the IDH Farmfit Fund Investment Committee, Senior Advisor to Consilium Capital and has been instrumental in establishing many innovative and impactful sustainable finance initiatives.
From 2009-2011 he served as chief private equity officer at the African Development Bank. Between 2003 and 2009, he led the European Investment Bank (EIB) private equity investment activities in sub-Saharan Africa and in European renewable energy. From 1997-2002, he was a member of the team that established Kennet Capital, one of Europe’s leading early-stage technology venture capital firms. Before this, he worked for the Commonwealth Development Corporation as a project engineer at agribusinesses in Cote d’Ivoire and Swaziland.
Martin has served as a member of the Emerging Markets Private Equity Association (EMPEA) Africa Council. He has a Master’s degree in manufacturing engineering and a Bachelor’s degree in general engineering from Cambridge University. He is a fluent speaker of English, French, Dutch and German and lives close to Geneva.
Jack Knellinger is a serial entrepreneur and investor currently serving as CEO and Founder of Revoluity LLC, an advisory firm working with emerging fund managers and startups building conscious companies.
Before forming his advisory firm, he served as a co-founder and Partner of Capria Ventures, a global venture capital firm accelerating the flow of early-stage capital in emerging markets to deliver superior returns and impact at scale. During his tenure, AUM across Capria’s fund manager network grew to over $1.5B AUM, with fund and direct investments spanning more than 40 countries.
Jack began his career as a software developer with LexisNexis though his time as a developer was short lived due to his pursuit of entrepreneurial endeavors focused on bringing meaningful solutions to market for the betterment of people and the planet. Jack was selected as one of the top 50 under 40 emerging leaders in social enterprise by the Social Enterprise Alliance and American Express in recognition of his previous work.
Laurence is Programme Director at the International Climate Finance Accelerator Luxembourg (ICFA) in March 2022. ICFA is an acceleration programme aimed at supporting innovative and impactful emerging fund managers in establishing their investment vehicles to combat climate change.
Laurence brings 5 years’ experience in acceleration programme management, supporting start-ups achieving development and scale-up including the development of international visibility, fostering startup ecosystem.
Additionally, she brings 15 years of expertise in the banking and fund industry.
Laurence earned a MSc in Finance from Liege University, where she conducted research and authored scientific papers on risks and insurance. She contributed to the writing of a book on actuarial theories.